Looking for a guide to buying bitcoin? Wondering where to start? People have many misconceptions about bitcoin – the first widely known and accepted cryptocurrency around the world.
Many people think, for example, that it is only used by hackers and suspicious people. However, bitcoin is actually becoming mainstream with everyone, from TigerDirect to Expedia.com to Dell, and even Subway, which now accepts bitcoin payments.
Why so popular?
Well, bitcoin has many advantages over other currencies. For example, you can send someone bitcoins as payment without having to go through a banking intermediary (and get extra fees). It is also much faster than sending money by bank bank or transfer. You can send bitcoins to someone and get them in seconds.
With all this, it is no surprise that many people are now trying to buy bitcoin for the first time. However, it is not as easy as going to the bank and withdrawing bitcoins – or going to the store and depositing hard-earned bitcoin money.
The system works a little differently than that. This guide to buying bitcoin will go through a few things you need to know before you buy – so you can buy safely and securely.
First of all, although the price could be over $ 2,000 per coin, you don’t have to buy whole bitcoin. Most places will allow you to buy pieces of bitcoin for only $ 20. So you can start small and start from there to make it more convenient for you how things work.
Secondly, this article is for general purposes only and should not be construed as financial advice. Bitcoin can be risky and you should consult your financial advisor before making any purchase to see if it is right for you.
So, here are 3 easy steps to buying Bitcoin:
# 1 Get a Bitcoin wallet
The first thing you need to do before you buy coins is to get a virtual wallet to store the coins. This wallet is a text that people can use to send you bitcoins.
There are many different types of wallets, including those you download to your phone or computer, online wallets, and even offline wallets for cold storage.
Most people prefer to have a wallet on their phone or computer. Popular wallets include Blockchain, Armory, Bitgo MyCelium and Xapo.
This is usually as simple as downloading a wallet to your phone as an application or downloading software to your computer from the main wallet website.
# 2 Decide where to buy
There are several types of places to shop and each one is a little different. There are online sellers who will sell you bitcoins directly for cash (either a bank or a credit card).
There are exchanges where you can buy and sell bitcoins from others – similar to exchanges. There are also local exchanges that connect you with sellers in your area who want to sell.
There are also ATMs where you can buy cash and get your coins in your wallet in minutes.
Every bitcoin retailer has its advantages and disadvantages. For example, ATMs are great for privacy, but will charge you up to 20% on the current price, which is ridiculous. (At a BTC price of $ 2000, that $ 400! So you pay $ 2400 instead of $ 2000).
No matter where you decide to buy, don’t forget to research and contact a trusted seller with a good reputation and strong customer service. For the first time, customers will have special questions and may need additional support to help them with their first transaction.
Take your time and explore different places to shop before you decide. Factors to consider include coin prices, additional fees, payment method, and customer support.
# 3 Buy Bitcoin and move it to your wallet
Once you find a place to shop, prepare your funds (i.e. you can send a bank transfer or use your Visa to fund your account). Then wait for a good price. (Bitcoin prices always vary 24 hours, 7 days a week). Then order when you are ready.
Once your order is filled and you have your coins, you will want to send them to your wallet. Simply enter your bitcoin address and ask the seller to send you your bitcoin. You should see them in your wallet within minutes to an hour (depending on how quickly the seller sends them).
Voila, you are now the owner of bitcoin. You can now send coins to pay for other goods and services or keep them for a rainy day.
One more thing to remember: bitcoin is still in its infancy. There are big price changes and currency can be risky. Never buy more bitcoin than you can afford to lose.